Dow futures: Market rebounds as Fed hawks said this; Tesla competition flying

Overnight, Dow futures rose slightly, along with S&P 500 and Nasdaq futures. Stock market rally struggled from big morning losses to close mixed on Thursday as two hawkish Federal Reserve officials eased rate hike concerns somewhat.




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Dow Jones Component United Health Group (United Nations) reports before the market opened on Friday, as the quarterly profits of health insurance companies and medical services companies began on a large scale. UN stock reversed higher from the 50-day line on Thursday to close 0.2% higher at 502.43, not far from the 518.90 buy point.

Banking giants Wells Fargo (WFC) and City Group (c) Also mentioned before the conquest. WFC and Citigroup stocks are in long downtrends. In fact, Citi stock fell to its worst level since late 2020 on Thursday, after weaker-than-expected earnings from c. B. Morgan Chase (JPM) and Morgan Stanley (Ms).

at the same time, dollar tree (DLTR), BJ’s sentence (BJ) and Lanthius Holdings (LNTH) The buy signals are flashing, while McKesson (MCK) had a bullish jolt.

China EV and battery giant BYD (BYDDF) is up on bullish earnings guidance, but remains sharply lower for the week following rumors that Warren Buffett’s Berkshire Hathaway Company may sell some of its large stake in BYD stock. Startups in China EV Lee Otto (LI) remain actionable, while Tesla (TSLA) takes between two major moving averages.

Lantheus stock is on the IBD Leaderboard. DLTR and Li Auto stock are available on SwingTrader. Dollar Tree, Lantheus, BJ’s Wholesale, McKesson, UnitedHealth and LI are on IBD 50 stocks. MCK and Dollar Tree stocks are also on IBD Big Cap 20.

The video included in the article discussed and analyzed Thursday’s market movement apple (AAPL), Costco Wholesale (COST) and BJ shares.

False hawks show a small pigeon

Federal Reserve Board of Governors Christopher Waller and St. Lewis Fed President James Bullard, two of the most vocal Fed policymakers about raising front rates, on Thursday cut expectations for a 100 basis point rate hike later this month. The prospect of a point price increase fully rose on Wednesday after the hot June CPI report and Atlanta Federal Reserve Chairman Raphael Bostik’s statement that “everything is in the works.”


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Waller said Thursday that 75 basis points remains the “base case” for a rate hike at the July 26-27 meeting, and says “markets may have gotten a little bit ahead of themselves” on 100 basis points, though he did not rule out a “bigger” move. .

Bullard told the Nikkei that he favored a move of 75 basis points, which he said would bring the Fed funds rate to a “neutral” level. He said more tightening was needed, but “we can assess” as the year goes on.

Ahead of the opening, the producer price index unexpectedly accelerated in June to an 11.3% gain versus. a year ago. But core inflation slowed more than expected. Notably, core PPI rose 0.4% vs. Last month, cooler than May’s 0.7% gain. This was in contrast to the core CPI, which is showing accelerating gains from month to month.

Markets are now pricing in a 57% probability that the Fed will raise interest rates by 75 basis points. On Wednesday, the odds of a full point rise rose to 80% from about 8% the day before.

Dow jones futures contracts today

Dow futures rose 0.3% against stocks. fair value. S&P 500 futures rose 0.35%. Nasdaq 100 futures rose 0.5%.

Chinese economic data was mixed overnight. Q2 GDP rose 0.4% versus a year ago, managed to grow despite the Covid shutdown during Q2 but lost 1% views. Industrial production for the month of June grew 3.9% compared to last year. A year ago, it was just below the consensus of 4.1%. However, retail sales rose 3.1%, defying views of flat results.

China posted 0.4% GDP growth in the second quarter of last year, missing expectations as the economy struggled to shake off the impact of Covid controls.

On Friday morning, investors will get US retail sales and industrial production data for June, along with the Empire Manufacturing Index for July.

Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.


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stock market rise

The stock market rally eased Thursday morning amid fresh inflation fears and weak earnings from JPMorgan. Major indices closed lower, but closed near their best levels today.

The Dow Jones Industrial Average closed 0.5% lower in stock market trading Thursday. The S&P 500 fell 0.3%. The Nasdaq Composite made partial gains. Small capital Russell 2000 decreased by 1%.

US crude oil prices fell 0.5% to $95.78 a barrel, far from intraday lows, but still the lowest close since April. Gasoline futures fell more than 1%, extending a rapid decline.

The 10-year Treasury yield rose 6 basis points to 2.96%, despite closing near session lows. The two-year yield wiped out significant gains to drop one basis point to 3.13%. The 1-year Treasury yield fell 3 basis points to 3.18%. The yield curve remains inverted from 1 year to 10 years, but to a lesser degree.

ETFs

Among the top ETFs, the Innovator IBD 50 ETF (FFTY) is up 0.45%, while the Innovator IBD Breakout Opportunities ETF (BOUT) is down 0.5%. The iShares Expanded Tech-Software Sector (IGV) ETF (IGV) sank 0.9%. The VanEck Vectors Semiconductor Index (SMH) stood out at 2.1%, with Taiwan Semiconductor (TSM) Wafer Segment Lifting Earnings And Guidance.

The SPDR S&P Metals & Mining ETF (XME) is down nearly 3%, and the US ETF Global X Infrastructure Development (PAVE) is down 0.6%. The US Global Gates Index (JETS) was down 0.7%. The SPDR S&P Homebuilders ETF (XHB) is down 1.1%. The Energy Select SPDR ETF (XLE) and Financial Select SPDR ETF (XLF) each lost 1.9%. The SPDR Healthcare Sector Selection Fund (XLV) was down 0.3%. UN stock is a major XLV component.

Reflecting the speculative story stocks, the ARK Innovation ETF (ARKK) is down 2.1% and the ARK Genomics ETF (ARKG) is down 1.8%. Tesla stock continues to be the #1 spot in Ark Invest’s ETFs. Cathie Wood’s Ark also owns some shares of BYD.


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Stocks near the points of purchase

Dollar Tree stock rose 1.7% to 168.76. This pushed DLTR stock back above 166.45 COP with a point-buy handle. Shares of the giant dollar store are up 7.8% above the 50-day line. The relative strength line, the blue line in the provided charts, has been making new highs for weeks, according to MarketSmith analysis.

BJ stock rose 2.95% to 70.16, just below 71.10 double-bottomed buying points. Stocks crossed a downward sloping trend line, providing an early entry. Volume was rather light while BJ stock is up 14% above the 50-day line, which should give investors pause. Ideally, a chain of membership repositories would merge around current levels, possibly forming an indicator. The RS line of BJ stock has reached new highs.

LNTH stock rose 0.7% to 67.91, rebounding back from the 50-day streak. Although it did not break Friday’s high of 69.08, Lantheus stock is actionable. LNTH stock should have a decent base after this week with 73.88 buy points.

McKesson stock had a weak start on Thursday, falling below the 50-day line to 315.78 on the day. But stocks rebounded, closing up 0.4% at 362.55. MCK stock has a fixed-base buy point of 340.04, but investors can use 335.47, just above Monday’s high, as an early entry.

BYD stock soaring

The electric car giant said Thursday that it expects first-half net profit to rise from 139% to 207% vs. The previous year in local currency, 2.8 billion – 3.6 billion yuan ($533 million). Excluding non-recurring gains and losses, the profit should go up 578%-795%.

BYD stock jumped 8.4% to 37.71, bouncing back above the 50-day line after finding support at 200 on Wednesday. But stocks are still sharply lower during the week. BYD stock fell 11.3% Tuesday on rumors that Buffett may move to sell some or all of his stake in the EV maker. These rumors are still unconfirmed. But BYD stock needs to be created again, creating a new base next to the deep consolidation from November to June.

Smaller competitor Li Auto gained 0.4% to 38.18. LI stock is still actionable after Wednesday’s bounce from its 21-day streak. Li Auto stock is working on a new consolidation after doubling from early May to late June.

Tesla stock rose 0.5% to 714.94. The stocks are just above the 21-day line and below the falling 50-day line. TSLA stock just crossed the 10-week streak again. Tesla’s second-quarter earnings are due July 20.


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Market Rise Analysis

For the second session in a row, the major indexes fell sharply in the morning but quickly rebounded, with the Nasdaq turning positive in the afternoon. On Thursday, the Nasdaq managed to post slight gains, while the S&P 500, Dow Jones and Russell 2000 indexes fell for the fifth consecutive session.

All major indices fell sharply during the week, which started with the Nasdaq hitting resistance again at the 10-week moving average. All indicators are below their 21 day moving averages.

After trending lower for several sessions, maybe the ‘uptrend is under pressure’ due to the rebound. But it doesn’t have to happen any time soon, and Thursday’s rush from the lows may have been the “rebound”.

Arguably, the leading indicators are range-bound, with highs in early or late June indicating a top, and lows in mid-June indicating a bottom. There is a lot of fluctuation within this range.

As earnings season rages on, adding to the whirlwind of inflation, stagnation and Fed uncertainty, volatility appears to be rising in the market and individual stocks are likely to continue.


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What are you doing now

Medical stocks like UnitedHealth and McKesson rebounded not so well in the morning, but investors can’t count on intraday rallies to save the day.

The market is looking for a short term direction within a long and painful downtrend. It’s not a good environment for exposure a lot. Be quick to take some profits to lock in the gains in such a volatile market.

Create your watchlists and watch for major earnings in the coming days and weeks.

Read the big picture every day to stay in sync with market trend, stocks and leading sectors.

Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.

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